The financially troubled Ruapehu Alpine Lifts (RAL) is to get its fourth cash injection from the Crown in a year, with a $7 million announcement on Monday.
Liquidators PWC, which took over when RAL went into voluntary administration last year owing $45 million, have told Newshub they only enough cash to keep the skifields operating until the end of next month.
Newshub can reveal Cabinet has met to rubber-stamp a new $7.35 million support package to allow RAL to continue until March 2024.
Of that RAL gets a $4.3 million loan to continue operating both the Tūroa and Whakapapa ski fields until the end of March 2024.
There is an in-principle agreement to provide $3.05 million of support to the preferred bidder of the Tūroa ski field (Pure Tūroa Ltd) to purchase and operate RAL assets on the Tūroa ski field, subject to being granted a concession.
"We have chosen an option that allows things to roll over," said Regional Development Minister Kieran McAnulty.
"We have got locals, councils, iwi and businesses all relying on the mountain. We've had a really successful ski season and we did not want uncertainty in a political period over an election so all options are on the table and we have not said 'no' to any one of them."
He said it gave stakeholders "a bit of breathing space".
Those stakeholders include several iwi, Councils, and the two private bidders Pure Turoa Ltd and Whakapapa Holdings which are eager to take over a side of the mountain each.
But some iwi feel the announcement is putting the cart before the horse.
"We are now in the precarious position where this is actually preempting any Tongariro National park treaty settlement," said Aiden Gilbert, of Te Korowai o Wainuiārua.
"Not even consulting with us seems to be the catch-cry of this Government."
But liquidator John Fisk told Newshub Monday's Government announcement "means we can commit to opening the 2024 season".
"If we look at our budget conservatively our money for RAL will run out at the end of next month. We have already had to make lots of financial commitments for next season for the upgrade of lifts, maintenance, uniforms and rental equipment that needs to be replaced."
He says the cash injection, which takes the Crown's total commitment to bail out RAL to $20 million, will also give time for the Department of Conservation (DoC) to process concessions.
RAL operates Turoa and Whakapapa under concessions from DoC which is under obligation to consult with mana whenua.
On August 31 Tuwharetoa advised MBIE's regional development agency Kānoa that it was bowing out of its bid to operate the skifields, leaving just Pure Turoa Ltd and Whakapapa Holdings interested in running a side each.
However Tuwharetoa, on behalf of Ngāti Haua, Uenuku, and Ngāti Rangi said it still wants to work with the Crown in a caretaker-type partnership for the next three years.
"Our due diligence concluded that Ngāti Tūwharetoa does not have the risk appetite to lead a commercial proposal. Our investigations highlighted that there are key unknowns which mean that exposing iwi capital to a ski field without the Crown as a partner would be imprudent," Ngāti Tūwharetoa CEO Nigel Chee wrote to MBIE.
The letter which Newshub has obtained a copy of, said iwi have identified a number of serious matters and suggests any deal the Crown makes without working with iwi "prejudices our settlement negotiations of the Tongariro National Park and prejudices the outcome of the terms and conditions of the concession license".
The Ruapehu Skifields Stakeholders Association (RSSA) says the whole process has been "fraught with a lack of good faith from MBIE".
"They have taken control of a process using public money to privatise an asset on public land without accountability," said RSSA spokesperson Sam Clarkson.
Finance Minister Grant Robertson denied any deals had been done to date, despite the cash for Pure Turoa.
"This is an important part of the economy and we want to make sure we leave the possibilities of how it can operate, open. So we are taking a pragmatic approach to roll things over for a couple more months."
Whakapapa Holdings boss Dave Mazey told Newshub it's disappointing.
"We still don't have a clear decision on who the successful bidders will be to run each side of the mountain, so in that sense it's disappointing. It's great to have a support package but we could already be out there stimulating demand for next season if decisions had been made."
He said the process of negotiating licenses and concessions with iwi and DoC could take up to four months.
Pure Turoa has been approached for comment.
